DUNCAN GWYTHERON a downturn

A combination of factors has changed the outlook for financial markets in recent months and it is no...

A combination of factors has changed the outlook for financial markets in recent months and it is now less certain that developed economies will escape with only a mild economic downturn. There are also continuing pressures in the corporate credit markets where conditions have tightened, despite two interest rate cuts in the US this year. Consumers are under pressure and corporate outlook statements are being closely scrutinised for evidence of how far the weakness could spread. Outside the US, economic activity has held up reasonably well but the theory that the rest of the world has...